U.S. Supreme Court
Auffm'ordt v. Rasin, 102 U.S. 620 (1880)
Auffm'ordt v. Rasin
102 U.S. 620
1. A, with a view of giving preference to B, a creditor, transferred to him Nov. 15, 1873, certain securities. B accepted them with knowledge that A was insolvent. Proceedings in bankruptcy were instituted against A. Feb. 7, 1874, he was declared to be bankrupt. His assignee brought suit in June, 1875, against B. for the value of the securities. Held that he was entitled to recover.
2. The tenth section of the Act of June 22, 1874, 18 Stat., part 3, 178, whereby in cases of involuntary or compulsory bankruptcy, the period of four months mentioned in sec. 35 of the Bankrupt Act of March 2, 1867, 14 id. 534, was changed to two months, did not take effect until two months after its passage. It was not intended to destroy previously vested rights of property or action, nor was it in the nature of a statute of limitations. It merely declared that certain acts thereafter committed more than two months prior to the institution of proceedings in bankruptcy should be valid.